21 thoughts on “Is Skype Up For Sale?”

  1. I think the services Om was referring to was meant to be “service providers” in the traditional sense, like voice and data providers. In my opinion, I think WebEx falls more into the SaaS category, but I agree, the sentence could’ve been worded a little more clearly 🙂

  2. Funny. I instantly thought of WebEx…
    Then I thought, damn, the IPO market is dead if Skype can’t even make it to IPO.

    I’m not necessarily a fan of Cisco, but this deal would make sense for them. Put Skype everywhere.

  3. I think it’s time for skype to repeat the same “cheat system” as ebay. Let’s Cisco by everything for 5 billions but one core component being left out so skype can come back to Cisco for licensing fee in addition of 5 billions.

  4. Actually, Cisco has been a service provider (then transitioned to enabler). First, with their Cisco Linksys One platforms a.k.a. Service Nodes (SN) [1] as well as the others here pointing out WebEx. Additionally, Cisco Eos is very much a full service solution for niche hosting requirements [2].

    However, the main difference here would be an instant addition of a full service provider play for both consumer and business. Adding Skype as an adapter to an ISR would prove to be a huge differentiator in the SMB/SME space. Though, I’d wonder if the Skype brand would filter down into Linksys offerings first or as a part of the consumer land grab in the living room for IPTV (Scientific Atlanta). Also, imagine their digesting M&A activity with Starent [3] and what Skype could mean in the mobile space as everything moves to IP.

    [1] Link
    [2] Link2
    [3] Link3

  5. Skype was a revolutionary service. But, even though I am not a economic expert, it seems to me if after 8 years Skype can only generate an annual profit of $13m how can they be worth $5b??

  6. When I suggested to a Cisco VP that they buy Skype he told me I was nuts, that when you really dig into the numbers 65% of Cisco’s revenue comes from telecoms carriers – why would they risk that.

    Now Google has put free calls to real phones into a browser, and the tools to remove international long-distance into some 70 million mobile phones a year (and rising), so maybe Cisco’s had a change of sack.

    Whoever gets Skype will have an asset of huge and soon-to-be-wasting potential. Cisco’s emphasis on enterprise may not be the best fit, though. I’d rather see Skype buy RingCentral and serve smaller businesses first – it would be a more natural fit, and a faster way for Skype to boost subscriber revenues from an average of around $1.70 annually to the $3-5 range where they can start to take off.

  7. Cisco has been making some interesting plays lately. It has been pushing video to business because it needs them to upgrade their infrastructure faster. So, Skype would seem to fit that strategy.

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